Zeroing out fraud, reducing ticket scalpers and adding immense fan value are just a few benefits that NFT Ticketing can bring to all types of events.
In the era of virtual reality, electric cars, and the Metaverse, it's hard to imagine a world without live event tickets being sold online. From concerts to sporting events to immersive experiences, buying tickets is as easy as asking Alexa or Siri. However, with this handheld convenience comes increased ticket fraud and scalping which leads to one thing: increased ticket prices.
Archaic state of web2 ticketing
According to a study by the University of Portsmouth, ticket fraud has increased by over 40% in the past year. The main reason for this spike is the growth of online sales, as it's simple for scammers to get their hands on enormous amounts of tickets that they then resell at inflated prices.
For example, in May of 2022, a soccer match between France and Liverpool in Paris was plagued by ticket fraud cases; in some estimates, 30 - 40,000 fans were affected. Fans were able to purchase tickets through official channels, but many of them were later found to be counterfeit. In addition, there were numerous cases of scalpers buying up large quantities of tickets and then reselling them for much higher prices. In the case of the Paris soccer match where rampant ticket fraud occurred, many of the tickets were bought through fraudulent means and then resold on secondary markets at inflated prices. This not only hurts the fans who wanted to see the game but also the teams and event organizers who lose out on revenue when tickets are scalped.
Why NFTs for tickets?
Combating ticket fraud is not easy or cheap with current inefficient technologies. Fortunately, there is a solution that doesn't involve reverting to paper tickets or implementing draconian anti-scalping measures.
NFTs (or non-fungible tokens) provide a digital solution to ticket fraud and scalping that is both secure and convenient. With NFTs, each ticket is unique and can be verified through blockchain technology, in INSID3RS.io's instance Polygon. This means that scammers can't easily sell fake tickets or resell tickets they don't own. Additionally, NFT tickets can be linked to a mobile device or wallet ID, making them dynamic and ensuring that the most up-to-date information is always available.
Key Benefits of NFT Ticketing
NFTs offer several advantages over traditional ticketing methods and even current ticketing platforms today. For one, they are much more secure, with each NFT associated with a specific wallet ID, and this information can be verified through the blockchain. In addition, NFTs can be linked to mobile devices, meaning that they can only be used by the person who owns them.
These security features make NFTs a clear path of evolution for the ticketing industry. With 1:1, wallet ID to mobile device verification, NFT tickets would become dynamic, ensuring the most up-to-date information and owner is accurate and verified. This would make it much more difficult for fraudsters and scalpers to operate, as they would not be able to sell or use tickets that they do not own.
Another advantage of NFTs is that they are much more transparent. All transactions involving NFTs are recorded on the blockchain, meaning that everyone can see what is happening to and with them. Each transaction is recorded on a digital ledger, the blockchain, with each transaction being its own "link" in the chain (hence blockchain). Every piece of information is recorded on the blockchain, including the past prices purchased or rented. Before offering bids on these, fans can confirm the current value of the tickets and the price paid for the tickets being offered to ensure they are not being ripped off. Even better; event creators control the entire ticketing lifecycle, including all fees and markups associated with them. This includes markups on the secondary market.
Adding value that goes beyond the ticket stub
By using this technology, both venues and leagues would be able to work together to provide things like “dynamic tickets.” These digital passes could update as they are redeemed and offer bonuses such as airdrops of extra NFTs, access to rare merchandise, or free vouchers for food and restaurants. Not only can individuals use the same tickets for multiple events, but they could potentially gain better benefits as a result of their loyalty, such as upgraded seats or meeting the event hosts. The potentiality of NFT tickets is nearly limitless--and all because blockchain makes them impossible to copy.
Event organizers should begin using NFTs as soon as possible to combat ticket fraud and scalping. Not only do they offer several advantages over traditional tickets, but they are also becoming more and more common every year. This means that event organizers have nothing to lose by making the switch.
So why are NFTs a clear path of evolution for the ticketing industry? Because they offer several advantages over traditional tickets, including security, transparency, and flexibility. Event organizers can use NFTs to create dynamic tickets that update in real-time. This ensures that the most up-to-date information about the event is always available to fans. In addition, NFTs offer a higher level of security than traditional tickets, meaning that fans can feel safe purchasing them online.
The live events industry is quickly realizing the potential of NFTs and is already starting to adopt this technology. For example, Ticketfly recently announced a partnership with Lveeplay which will use NFTs to create digital tickets for events. With NFTs, we can create a secure and convenient system for buying and selling tickets online.